Robinhood Gold is a monthly subscription service you can get through the Robinhood investment app. It costs $5 per month and gives experienced traders advanced market research, in-depth stock data, large instant deposits, and potential access to margin trading.
The free version of Robinhood already allows you to invest in stocks, exchange-traded funds (ETFs), cryptocurrencies, and more. So is the $5 a month for Robinhood Gold worth your money?
A Gold subscription might be worth it for more experienced investors who actually use the tools Robinhood Gold offers. But if you’re a newbie, then Robinhood’s free features might be enough for you.
What is Robinhood Gold?
Robinhood Gold is an optional monthly subscription service the Robinhood investment app offers.
The Robinhood investment app is a free mobile app that allows individual investors to buy and sell fractional shares, stocks, ETFs, and cryptocurrencies with $0 trading fees. It also gives access to options trading and extended market hours on business days. However, the free trading app doesn’t offer advanced tools for investors with more experience.
Learn more about the free version of the app in our Robinhood review.
Robinhood Gold is a premium upgrade for individuals with advanced investment experience. For $5 a month, Robinhood Gold gives you access to advanced market research, in-depth data, larger instant deposits, and margin trading.
What does Robinhood Gold offer?
Robinhood Gold provides you with premium trading tools you can’t get from the free version of the app. You’ll have access to deeper market research, Level II market data, and bigger instant deposits. With a Gold subscription, you can also apply for margin trading.
Keep in mindThe Gold paid service isn’t required for standard things such as stock trading, ETF investments, or cryptocurrency purchases. You can do that with the free version of the Robinhood app. Gold also doesn’t give you access to assets not supported by the Robinhood platform, such as mutual funds and bonds.
Get deeper market research
Robinhood Gold subscribers have unlimited access to in-depth stock research and analysis from Morningstar, a leading provider of independent investment research.
In-depth research reports from Morningstar are available for approximately 1,700 stocks and analyze factors such as the company’s business strategy, leadership, and fair market value.
Access Level II market data
Advanced investors and day traders frequently use Level II market data to inform their decisions about investing money. Level II market data provides information about the traders buying and selling a particular stock and the level of supply and demand it has, which may determine the stock’s value in the future.
Robinhood partners with Nasdaq to provide Level II market data to Robinhood Gold subscribers. One downside to the Level II market data from Robinhood Gold is that it only covers stock orders on the Nasdaq exchange and doesn’t include data about stocks traded on other exchanges.
Earn interest on uninvested cash
You can opt in to the Robinhood cash sweep program when you have uninvested cash in a free Robinhood account. This program automatically deposits your cash into a network of program banks that allows you to earn interest on your uninvested money.
Signing up for Robinhood Gold increases the amount of interest you earn on your uninvested cash. You can earn 4.65% (as of May 8, 2023). The money swept through this program is insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per program bank and up to $1.5 million in total.
Make bigger instant deposits
When you deposit money into a brokerage account, you often have to wait a few days for the money to clear before you can use that cash to buy securities. That delay may be frustrating if you want to take advantage of a temporary market condition.
The free Robinhood account allows instant deposits, which gives you immediate access to up to $1,000 after initiating a deposit.
Robinhood Gold takes this feature a step further, giving you instant access to up to $50,000. The “up to” part is important here because not every Robinhood Gold subscriber will get instant access to that much cash. Keep in mind that the actual amount depends on your account balance and status.
Use margin trading
Robinhood’s free accounts are cash accounts that allow you to use the money you have in the account to purchase the assets you choose. Cash accounts don’t let you borrow money or go past the actual cash amount you deposit.
However, as a Robinhood Gold subscriber, you have access to a margin account that enables you to borrow cash from Robinhood to purchase assets.
A margin account gives you more purchasing power by lending you money to make larger purchases. This may accelerate your profits, but it’s also quite risky because you may incur greater losses on top of owing the money you borrowed.
Additionally, if your portfolio value drops below your personalized margin maintenance requirement, Robinhood may issue a margin call. A margin call allows Robinhood to liquidate your assets if you don’t deposit more money to stay above the margin maintenance requirement.
WarningMargin trading should only be used by advanced investors. If you are new to investing — or losing money would cause you financial hardships — using a margin account might not be a good fit.
To gain access to a margin account, you need to submit an application and have it approved after signing up for Robinhood Gold. To qualify, you must have at least $2,000 or 100% of the asset purchase price in your account.
How much does Robinhood Gold cost?
Robinhood Gold is free for the first 30 days. After the trial period ends, it costs $5 per month. You get charged every 30 days at the start of each billing cycle.
If you want to utilize margin trading, there is an additional cost. There’s an annual interest charge of 7.75% (as of May 8, 2023) when you borrow more than $1,000 of margin. This interest is calculated daily, and Robinhood charges your account at the end of each billing cycle.
For example, let’s say you use $5,000 worth of borrowed money. The first $1,000 is included with your $5 Robinhood Gold subscription, so you’d only pay interest on the additional $4,000.
Multiply $4,000 by the annual interest rate, then divide by 365 to calculate the daily interest rate. In this case, you would pay $0.85 cents per day in interest.
TipAlthough the current interest rate on margin is 7.75% (as of May 8, 2023), Robinhood may change that rate at any time.
Is Robinhood Gold worth it?
When deciding whether Robinhood Gold is worth the $5 monthly fee, consider your own trading habits and investing experience. A Robinhood Gold account may make sense if you want:
- Quick access to funds for large purchases: Robinhood Gold allows you up to $50,000 in instant deposits. The larger instant deposits may allow you to quickly take advantage of market changes, for example, buying stocks while the price is down.
- Deeper research and data for advanced trading: Active traders who self-manage their portfolios may appreciate the detailed Level II market data and analysis from Morningstar that comes with Robinhood Gold.
- Access to margin trading: If you want to borrow money to increase your buying power, Robinhood Gold may give you access to a margin account. Keep in mind that margin trading is risky and past performances don’t guarantee future results.
On the other hand, if you’re a beginner or prefer a passive investment strategy, you may not find much value in Robinhood Gold and might be better off saving the $5 monthly fee. After all, that’s $60 a year you could invest instead.
Other investment platforms to consider
Although Robinhood Gold could be a valuable service for some investors, it’s not for everyone. You may want to use the free Robinhood app or an alternative trading platform such as Acorns or Moomoo.
With Acorns, you can start investing money with as little as $5. It may be a good option for new investors that want passive and diversified portfolios, as Acorns automatically invests your money in ETFs and allocates your investments according to your goals and risk tolerance.
Acorns allows you to open taxable brokerage accounts and individual retirement accounts, among other account types. Acorns also recently introduced a new bitcoin ETF, which allows users to join the cryptocurrency trading scene through a diversified fund.
Find out more in our Acorns review.
As with Robinhood, Moomoo is a commission-free investment app. It allows users to trade on the U.S. and Hong Kong stock markets. Investors may buy and sell stocks, ETFs, options, and American depository receipts, which give investors access to foreign stocks and markets. One missing asset class in Moomoo is cryptocurrencies because it does not allow investors to buy or sell them.
Learn more in our Moomoo review.
FAQs about Robinhood Gold
What is Gold on the Robinhood app?
Robinhood Gold is an optional monthly subscription that provides access to additional trading options and tools. For $5 per month, subscribers can view advanced market data, get larger instant deposits, and participate in margin trading.
Does Robinhood Gold allow extended trading?
Yes, Robinhood Gold allows extended trading, but so does the free Robinhood app. The market's main hours are Monday through Friday from 9:30 a.m. until 4:30 p.m. ET. But with Robinhood, you may start trading at 7 a.m. ET, and after-hours trading is available until 8 p.m. ET.
Is Robinhood safe?
Although some people may be concerned about the investment safety of Robinhood, the company is subject to the same regulations and oversight as traditional stock brokers.
Robinhood is regulated by the U.S. Securities and Exchange Commission. It also is a member of the Financial Industry Regulatory Authority.
Robinhood members are protected by the Securities Investor Protection Corporation. Members get up to $500,000 in SIPC coverage. Robinhood also provides additional insurance through Lloyds of London that covers up to $10.5 million per customer, including up to $1.75 million in cash.
Remember that these protections only cover losses due to a broker’s financial difficulties, theft, or closures. It does not reimburse customers for investment losses due to market changes.
At just $5 per month, Robinhood Gold might be a worthwhile subscription for seasoned investors. The service offers detailed market data, larger instant deposits, and margin trading. However, novice or passive investors who don’t use those features may feel the service isn’t worth the fee.
Other platforms, including robo-advisors or investment apps, could be a better fit for you. Explore your options by checking out our picks for the best investment apps.
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